so what will this be sir, this will be our value take this,
now the depreciation you have to apply you have to apply it
on this value
this value, you will have depreciation on this so do minus
depreciation
take this you have done depreciation minus, this will be
your this will be your closing WDV this will be your
closing WDV
you did nothing, you did opening do you have opening WDV?
what will be opening WDV, closing of last year, you took
opening bought assets, added, sold assets, minus one value
will come out, what will you apply on that value,
depreciation that depreciation will also be minused from
that value and my dear, after that the value that will come
out that will come, closing WDV which will be made next
year, opening WDV is the point clear? no problem, no fear,
no problem, no problem
sir, you are standing, so what problem
sir, if you are still not able to understand this concept,
then don't take tension
I will get it done in reading, there also things will be
clear
sir, you were saying that asset should be put to use, then
you will get depreciation
I said, yes, I said put to use, did I say anything wrong?
sir, in put to use, assume that a person uses that asset
for the whole year
then he will get depreciation, I said yes, he will get sir,
assume that a person uses that asset only for one day
he has used it only for one day
I bought a car for business or I bought a truck for business
I use that truck only for one day
in the whole year, so what should I do in that case? should
I give depreciation for the whole year to that person, he
will keep on doing like this he will buy an asset, use it
for one day
then he will sell it the next day
this is what I should do
what should I do, tell me it is a simple case, if you have
used an asset for less than 180 days approximately, it
takes 360 days in a year, there are 365 days in this, it
takes 360 days
approximately, if you have used an asset for less than 180
days
if you have used an asset for less than 180 days
the reason for using it less can also be that you have
bought that asset at the end
what is your financial year?
your financial year is from 1st April
till 31st March is this your financial year? this is your
financial year from 1st April till 31st March
1st April for example is 22nd, and 31st March is 22nd
I am saying that this is a date of 3rd October
let's assume that this is the mid-year date before this, if
you buy an asset it is a simple thing, whatever
depreciation you get take out the full depreciation, and
whatever depreciation you get divide it by half, 1 by 2
ok sir, half
we will give you half depreciation that year and if for
example, you had bought that asset somewhere here and you
used it for the whole year
then you will get full depreciation in that case which is
less than 180 days, if you have used it that year
that year, which year, the year you have bought that asset
I have bought that asset today, for example today is 1st
April and from 1st April, I will use it till 31st March
I have used the asset for the whole year, how much
depreciation I should get, the full answer
I have bought an asset today, here on 1st April but I start
using it from here
I have that asset, it has never been used, it is a machinery
I have bought all the machines, but I didn't get a worker
for the whole year when I got a worker, that machine
started working
I started using it from here, so it is less than 180 days
I have used it after half a year, so it is less than half a
year in that case, what will be its depreciation? half it
is a simple point if you have used the asset for the whole
year, full half a year, if it is less than 180 days, then
half check the date of 3rd October they have told the date
of 3rd October before 3rd October, if you put that asset in
put to use then full depreciation if you put it after 3rd
October, then half depreciation so which asset do we have
to check, do we have to check
whole block? do we have to check the whole block? you said
that we can put many assets in one block, whose
depreciation rate is same so we have to check the whole
block, for example this block right? I have my furniture in
this furniture 1, furniture 2, furniture 3 and 4th
furniture, and these are running from the beginning these
are running for 3-4-5 years now I have bought new furniture
here, because the rate of depreciation is same so I have
put new furniture in this block right? their
WDV is running their opening WDV is running its cost,
because I have bought this year, so WDV has no cost its
cost only so in this case the depreciation on this thing
how will I check that, I will see that the year I have
bought that asset was I able to use it for more than 180
days in that year? if your answer is yes then I will get
full depreciation
I will calculate its total together
I will do full depreciation but for example if your answer
is no then you have not been able to use this asset for the
whole year then you separate them on this one your opening
WDV you put full depreciation because they are running from
the beginning for this condition you have to check the year
you bought the new asset that year if you have used it for
less than 180 days then do half depreciation add this half
depreciation that's it that total depreciation will be
deducted any problem? when
you have to check this condition when do you have to check
this condition you have to check this condition when you
buy the asset when you acquire the asset you have to check
that this put to use is more than 180 days or less than
that let's move ahead let's finish this topic there is
nothing left
come my dear friends let's on this topic put our eyes and
our spectacles and our vision vision is not a name of
anyone ok sir what do you keep on saying
I keep on saying this so that the atmosphere is light there
are so many weird concepts if I also start teaching in a
weird way what is the use of that neither you will
understand nor I will enjoy that's why if I teach lightly
jokingly then you will also enjoy reading which I feel you
are getting this is the point asset used for less than 180
days
if you use less than 180 days then how much depreciation
you will get 50% but you have to check this condition when
you are acquiring the asset the year you are acquiring the
asset that year you have to check condition is also
SSE must own the assets you should be its owner
I told you in starting the Harrier you were buying its
value was 17-18 lakhs so that you will get the depreciation
if you are the owner then you will get for example your
business is driving cars on rent you gave your Harrier to
someone give me Rs.
5000 per day for that person what will he do with the
depreciation if he has to take the expense then the expense
of Rs.
5000 will be deducted who will deduct the depreciation you
will the owner will deduct the depreciation deduction today
the print quality may be out
I apologize to you we will take care of this you will not
see this in the next lecture give me some time for this
because sir
I am so busy
I have a meeting with my commissioners income tax
commissioners there is a case of our client I have to
understand from them what are the points they are telling
that too PGVP
I will tell you later when the next topic comes he is
talking about block of assets now let's talk about
additional depreciation additional depreciation is nothing
sir additional depreciation is giving you an advantage
government is giving you a benefit what is the benefit it
is because of depreciation your profit to reduce the profit
the government is giving you an expense which is mandatory
the less your profit the more benefit you will get so that
the backward areas the industrial areas in
backward areas you go there and set up your factory for
this the government has given some benefits what are the
benefits additional depreciation you come for manufacturing
for manufacturing you buy some machines you buy new machines
for that the government is giving you additional
depreciation So that you are motivated.
When you get to spend more, we have given you a
depreciation deduction of 30%, 40%, 15%.
If I give you an extra deduction of more expenses, then
your general profit will reduce.
It will reduce from depreciation and from additional
depreciation it will completely reduce.
So, as a manufacturer, as a businessman, what will you
think?
Should I go to that area and put up a factory?
Or should I buy these particular machines?
So that I can allow more expenses and my profit will reduce.
So, the government motivates you because of this and gives
you a little additional depreciation.
You get a little extra depreciation on top of that which
you have already taken.
What is it?
Let's try to read it.
Additional depreciation on plant and machinery acquired by
International Undertaking.
This is allowed.
You get this on a new machinery.
If you buy a new machine, will you get it on an old
second-hand machine?
This is how it is.
I won't give you double benefits.
Buy a second-hand machine at a low price.
Show the bill at a higher price.
Take depreciation at a higher price.
Claim all the expenses.
Even if you don't get a penny out of your pocket.
The government doesn't give you this much benefit.
You have to buy a new machinery.
Additional depreciation is allowed on the new machinery.
New plant and machinery.
Leave ships and aircraft.
When did you acquire and install?
After 2001-2005.
And what is the job of an SSE?
Who is the businessman?
He is engaged in the business of manufacture.
This is the job of manufacturing.
Any article thing.
I manufacture clothes.
I manufacture shoes.
I make shoes and slippers.
Have you bought a new machinery?
You will get it.
This is the job of manufacturing.
You make something.
You will get it.
Buy a new machinery.
Additional depreciation.
Take it.
Shahrukh Khan's film, Raees.
What does the policeman say when he comes to arrest him?
Bring the evidence.
That's what he is saying.
Bring the machinery.
Additional depreciation.
Take it.
This is the dialogue.
We know all the dialogues.
Just keep watching.
Keep watching your master.
This is the job of manufacturing.
You buy a new machinery.
You will get additional depreciation.
This can also be your job.
Distribution of power.
Power transmission.
There is a company called Adani Power.
There is Adani Power.
If Adani Power buys a new machinery, what will it get?
What will the new machinery get?
It buys it for its electricity business.
What will it get?
It will get additional depreciation.
You will get what you are already getting.
You will get more than that.
Assets for 180 days.
What is the rate?
It is a fixed rate of 20%.
If you use assets for 180 days, what is the rate?
It is half.
What is the rate of 20%? 10%.
Any problem?
You will get additional depreciation of 10%.
If you use plant and machinery put to use.
Use the word put to use.
How many days did you use it for?
Less than 180 days.
During the previous year.
Any problem?
What will happen to you?
In the previous case, we had reduced your depreciation.
In that case, we had reduced your additional depreciation.
We had reduced both of them.
What will come out of this?
Closing WDV.
This will reduce your WDV.
What is the use of giving additional depreciation?
You will get depreciation expenses against your profit.
You will get additional depreciation expenses.
Profit will be reduced.
WDV will be reduced.
Am I clear?
Are you getting me?
Shall we move ahead?
These are the simple points.
This is what I have explained to you.
There are some conditions.
What are the plant and machinery that you do not get
additional depreciation?
First of all, you get depreciation on plant and machinery.
Common sense says, if you buy office furniture, you will
not get additional depreciation.
Additional depreciation will not be available if the plant
and machinery is second-hand.
What is the point?
Before installation, the plant and machinery was used
within or outside India.
Basically, it is second-hand.
The wording of this is very tough.
Why is it tough?
Common sense does not understand this.
If a common man has a case in the income tax, he will not
be able to defend himself.
He will not understand what to defend.
He will take help of lawyers and chartered accountants.
You can see the language of any actor.
It is simple.
If you write here, it is second-hand.
Am I making any sense?
I am here. I will explain.
If you install it in an office, residential accommodation
or guest house, you will not get additional depreciation.
I am not talking about
Qualify.
If you have office appliances, road transport vehicles, you
will not get any depreciation on cars.
Any machinery, plant, the whole of the actual cost is
allowed as deduction.
The actual cost is deducted
If you deduct 100% or 50% in any other section, you will
not get any depreciation.
You have already given a benefit.
You said, I bought a machine for 10 lakhs.
Take 100% deduction.
Then why are you taking it again and again?
Either say horse or chattar.
Do not repeat horse-chattar.
Is the point clear?
Friends, my only wish is that you do something in your life.
Do something in your life.
Be something.
Many people have taunted me in life.
Many people doubt me.
They say, you will not be able to do anything.
Who gave them the right?
Are they astrologers?
Are they going to see the future?
If we do not go till now, does it mean we will not go ahead?
When you wake up, it is still morning.
If you start working hard from today, and work hard for 2-3
years, your life will go from here to here.
Keep working hard.
If you want to spread light like the sun in the world, burn
like the sun.
Do not just talk about people.
You also become something.
We have already discussed the rates.
Is the point clear so far?
Opening WDV, closing WDV, rates of depreciation, additional
depreciation.
We have discussed the depreciation expenses.
How to get the deduction of depreciation expenses.
Is it necessary to take the deduction?
It is very necessary to take the deduction of depreciation
expenses.
With this, the topic of depreciation ends.
There is nothing left in this.
Do you want to ask a question?
It is a small question.
The concept is clear.
You have been given the opening balance of plant and
machinery worth Rs.
30 lakhs.
After reducing the depreciation, you will go back.
I have told you the format.
First, the block of assets that you have been given, how
many blocks will go to the earth?
There will be 4 categories.
After making 4 categories, pick any block.
See if the rate is different.
One will be at 15% and the other at 40%.
If yes, then make a block of 15% for the asset worth 15
lakhs.
Make a block of 40% for the asset worth 40 lakhs.
This is plant and machinery.
It has not told the rate of plant and machinery.
I am assuming that 15% is the general rate.
You will get that.
He bought a new machinery and used it on 8th June.
When did he use it?
On 8th June, before 3rd October.
He used it for more than 180 days.
He used it for more than half a year.
He will get full depreciation.
This is the third point.
He bought the machinery.
But when did he start using it?
He started using it on 15th December.
In that case, he used it for less than 180 days.
He will get depreciation at half rate.
These are the three points of plant and machinery.
The one with 15% depreciation.
If you look at the computer, the depreciation rate is 40%.
The depreciation rate is 40%.
He is at 15% and he is at 40%.
Make a separate block for 40%.
Calculate in one block.
When did he buy it?
On 1st January 2023.
He acquired it in January and installed it.
January 2023.
If you use it for 90 days, it is less than 80 days. So,
depreciation will be half.
Is there any problem here? No problem.
Now, he says that you have to compute depreciation and
additional depreciation.
You have to calculate depreciation and additional
depreciation.
We will calculate depreciation.
For additional depreciation, I told you that if someone
works in manufacturing, after reading this question, he
doesn't look like a man who works in manufacturing.
Sir, it is written here that the proprietor is engaged in
manufacturing business.
So, he is eligible. He will get additional depreciation.
Now, let's understand his calculation.
He doesn't have to do anything. He has to take these 3
together in 15% block.
The 40% one will go separately.
He won't get additional depreciation on the computer
because it is office appliance.
Who gets additional depreciation? On the planted machine.
Which is the planted machine? The second end.
The new one that you buy. You give it on the new one.
And this is what he must have done.
Look at his working notes.
Opening balance.
He did the same thing. Opening WDV.
Then the machine he bought.
And one value of this has come out.
The value of the computer has come out. Simple.
Now, he is just calculating the total value of this.
What is the total value of this block?
Now, calculate the depreciation.
This is the opening balance.
He will get depreciation for the whole year.
Any problem?
No problem.
Then, this is the machine.
He has been using it for 180 days.
So, he will get depreciation for the whole year.
So, add 30 lakhs and 20 lakhs.
It becomes 50.
Here, on 50, he got depreciation for the whole year.
This is for half a year.
Add depreciation for half a year on it.
It will be 8 lakhs for half a year.
And the computer.
Usually, it will take 40% depreciation.
But, if you are using it for half a year, you will get half
depreciation of 20% in that case.
That's it.
He has calculated it like this.
According to the values.
Okay? Here is his calculation.
And, additional depreciation.
He has taken it on the new machine.
He bought two machines.
Additional depreciation is 20% rate.
He used one machine for the whole year.
So, additional depreciation is 20%.
He used one machine for less than half a year.
So, 10% rate on it.
Half rate.
He is doing the same.
Normal depreciation is taken.
Additional depreciation is taken.
This is his question.
Simple.
Thank you.